tag:blogger.com,1999:blog-6245381193993153721.post8446598355158100438..comments2024-03-17T00:23:24.896-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Interview with Geoff HarcourtLord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6245381193993153721.post-79203486124835128282011-06-01T10:21:10.235-07:002011-06-01T10:21:10.235-07:00"Also, workers demanded excessive wage rises&..."Also, workers demanded excessive wage rises"<br /><br />However, bad that workers demanded higher wages - unfortunately, I see that views of Keynesians are similar to those of neoliberals.<br /><br />"Some kind of incomes policy or wage-price controls was the solution."<br /><br />But it probably doesnt even Nixon did, and hurt the employees.Łukaszhttps://www.blogger.com/profile/16503354820848208860noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-49846787553518703942011-06-01T06:04:17.805-07:002011-06-01T06:04:17.805-07:00"Guilt" is the wrong word. One cause of ..."Guilt" is the wrong word. One <i>cause</i> of stagflation was certainly bad government policy. <br /><br />Also, workers demanded excessive wage rises and businesses raised prices in response, leading to a wage-price spiral and vicious circle, and that was a major cause too. Some kind of incomes policy or wage-price controls was the solution. In the long term, commodity buffer stocks will prevent stagflation.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-57024749377081454432011-06-01T05:58:11.655-07:002011-06-01T05:58:11.655-07:00So the rulers are guilty, not the workers who dema...So the rulers are guilty, not the workers who demanded higher wage increases? Because many Keynesians, the causes of stagflation is looking for too much "greed "of employees.Łukaszhttps://www.blogger.com/profile/16503354820848208860noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-82270928289038630922011-06-01T04:10:55.568-07:002011-06-01T04:10:55.568-07:00Yes, wage-price spirals broke out 1969-1972 due to...Yes, wage-price spirals broke out 1969-1972 due to commodity shocks, the break up of Bretton Woods, and the US policy in the 1960s of dismantling commodity buffer stocks, as was shown by Kaldor:<br /><br />Kaldor, N. 1976. “Inflation and Recession in the World Economy,” <i>Economic Journal</i> 86 (December): 703–714.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-46088376873146769852011-06-01T04:02:38.974-07:002011-06-01T04:02:38.974-07:00"Another crucial point is that stagflation ca..."Another crucial point is that stagflation can be easily explained by a proper understanding of Keynes’s theory"<br /><br />How ??? Just please dont hide behind the oil, because inflation will rise even before this fact.Łukaszhttps://www.blogger.com/profile/16503354820848208860noreply@blogger.com